•Realização
•Parceiros
•Apoio
•INFRASTRUCTURE FINANCING IN BRAZIL
•UNTIL 2014
•Almost only BNDES: up to 80%, 10-20 years, lowest rate
•Commercial banks: bridge loans, completion L/C, repasse
•Capital market (since 2012): as a complement to BNDES, 10-15%, thanks to
strong incentives from the Goverment and BNDES
•BNDES drawdowns Infrastructure (R$MM)
•Ranking Anbima Project Finance
•INFRASTRUCTURE FINANCING IN BRAZIL
•CURRENT CHALLENGES
•BNDES having some stronger constraints
–Reduced amount (to 50%) and increased costs (restricted TJLP, use of market rates)
•Capital market represents to greatest potential but is still marginal
–Cannot really address needs of large projects (over R$ 1 billion)
–Sovereign rates continue to be high (for a better risk)
–Initiatives include: possible new instruments (Letra de investimento?), extend to benefits to a
wider investor base (assets)
–Foreign investors : still a question mark, will possibly require “simpler projects” and an effective
solution for the FX risk (either swaps or natural hedges such as ports, oil&gas, commodities,
specific power projects)
•Commercial banks facing a number of defaulting projects/restructuring, lava
jato, high exposure with some existing players, no LT funding
–Tend to be more selective with lower tickets sizes (R$ 200-300 million)
•INFRASTRUCTURE FINANCING IN BRAZIL
•EXPECTATIONS FOR 2015-2016
•BNDES still very relevant (up to 50%)
–Complemented by other state owned banks on major projects
•Larger capital markets component
–Fast changing environment
–Introducing new risks for sponsors: liquidity, pricing, negative carry
–Will require more sophistication and monitoring from sponsors
•Multilaterals
–On a case by case basis
–USD deals or with embedded swaps